Correlation Between American Express and GOLDMAN
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By analyzing existing cross correlation between American Express and GOLDMAN SACHS GROUP, you can compare the effects of market volatilities on American Express and GOLDMAN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Express with a short position of GOLDMAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and GOLDMAN.
Diversification Opportunities for American Express and GOLDMAN
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and GOLDMAN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding American Express and GOLDMAN SACHS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDMAN SACHS GROUP and American Express is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Express are associated (or correlated) with GOLDMAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDMAN SACHS GROUP has no effect on the direction of American Express i.e., American Express and GOLDMAN go up and down completely randomly.
Pair Corralation between American Express and GOLDMAN
Considering the 90-day investment horizon American Express is expected to generate 4.47 times more return on investment than GOLDMAN. However, American Express is 4.47 times more volatile than GOLDMAN SACHS GROUP. It trades about 0.28 of its potential returns per unit of risk. GOLDMAN SACHS GROUP is currently generating about -0.12 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. GOLDMAN SACHS GROUP
Performance |
| Timeline |
| American Express |
| GOLDMAN SACHS GROUP |
American Express and GOLDMAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and GOLDMAN
The main advantage of trading using opposite American Express and GOLDMAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, GOLDMAN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GOLDMAN will offset losses from the drop in GOLDMAN's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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